Correlation Between Jabil Circuit and PowerFleet,

Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and PowerFleet, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jabil Circuit and PowerFleet, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jabil Circuit and PowerFleet,, you can compare the effects of market volatilities on Jabil Circuit and PowerFleet, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jabil Circuit with a short position of PowerFleet,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and PowerFleet,.

Diversification Opportunities for Jabil Circuit and PowerFleet,

0.71

Correlation Coefficient

Jabil Circuit  PowerFleet,

Poor diversification

The 3 months correlation between Jabil and PowerFleet, is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Jabil Circuit is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jabil Circuit are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and PowerFleet, go up and down completely randomly.

Pair Corralation between Jabil Circuit and PowerFleet,

Considering the 90-day investment horizon Jabil Circuit is expected to under-perform the PowerFleet,. But the stock apears to be less risky and, when comparing its historical volatility, Jabil Circuit is 4.9 times less risky than PowerFleet,. The stock trades about -0.05 of its potential returns per unit of risk. The PowerFleet, is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  549.00  in PowerFleet, on September 12, 2024 and sell it today you would earn a total of  137.00  from holding PowerFleet, or generate 24.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Jabil Circuit  vs.  PowerFleet,

Jabil Circuit

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jabil Circuit are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, Jabil Circuit disclosed solid returns over the last few months and may actually be approaching a breakup point.

PowerFleet,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jabil Circuit and PowerFleet,

The main advantage of trading using opposite Jabil Circuit and PowerFleet, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, PowerFleet, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PowerFleet, will offset losses from the drop in PowerFleet,'s long position.

The idea behind Jabil Circuit and PowerFleet, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.